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Gold and copper explorer SolGold said a key Ecuadorean court had rejected a petition that would have allowed a possible referendum on banning mining in Imbabura province.
The province hosts SolGold's 85% owned Cascabel project and other exploration projects. Shares in the company rose by more than a fifth in response to the news.
The Ecuadorean Constitutional Court had unanimously and definitively rejected the petition heard on 5 June, the company said.
'With this decision the petition has been closed and the case closed,' it added.
SolGold said the court rejected the petition on the basis of technicalities and did not discuss, or rule on, the merits of the case.
A formal resolution with further detail was yet to be published.
'Representatives from a large number of Ecuadorean government bodies, employees, regional community representatives, pro-mining groups, international mining groups as well as members of the community from Cascabel attended the hearing to demonstrate their strong opposition to the proposal,' the company said.
'The court heard arguments from many interested parties with the great majority opposing the proposed question.'
'The Cascabel project is a key project in Ecuador's developing mining industry and a critical driver for the future of Ecuador's economy in the view of the government.'
'SolGold continues to receive full and objective support from the Ecuadorean government, who, most recently, publicly stated that Cascabel has the potential to become one of the world's largest copper, silver and gold mines on 12 June 2019.'
At 8:14am: (LON:SOLG) SolGold PLC share price was +8.2p at 36.8p